TLDR
- Dogecoin price jumped 2.5% to $0.20 after Elon Musk posted an image featuring the Shiba Inu mascot on X, extending a 55% recovery from its recent low of $0.13
- Technical analysis shows DOGE forming an Adam and Eve double-bottom pattern with a neckline at $0.216, suggesting a potential 25% rally to $0.260
- The $0.26 target aligns with the 0.382 Fibonacci retracement level and coincides with support from an ascending trendline and 0.236 Fib line
- Futures data reveals heavy short liquidation zones between $0.215 and $0.27, which could trigger a short squeeze and accelerate upward price movement
- RSI indicator displays an inverse head and shoulders breakout pattern on the 4-hour chart, with analysts suggesting DOGE needs to hold above $0.20 to confirm momentum toward $0.25
Dogecoin climbed 2.5% to reach $0.20 following Elon Musk’s latest post on X. The post featured the memecoin’s Shiba Inu mascot, drawing immediate attention from traders.
The price movement extends DOGE’s recent recovery from $0.13, its lowest point since April. This represents a 55% gain over just two weeks of trading.
Flōki is back on the job as 𝕏 CEO! pic.twitter.com/Zu29Dos24r
— Elon Musk (@elonmusk) October 20, 2025
Musk’s social media activity has historically moved Dogecoin prices. His tweets fueled the memecoin’s 2021 rally from cents to nearly $0.73.
The current price action shows buyers regaining control after weeks of selling pressure. Multiple technical indicators now point to further upside potential.
Dogecoin is forming an Adam and Eve double-bottom pattern on the charts. This pattern consists of a sharp V-shaped drop followed by a rounded recovery.
The pattern’s neckline sits at $0.216. A breakout above this level could push prices toward $0.260.
This represents approximately 25% gains from current levels. The target matches the pattern’s measured move projection.
Technical Confluence Strengthens Bullish Case
The $0.26 target aligns with the 0.382 Fibonacci retracement level on DOGE’s weekly chart. This creates a confluence zone of technical resistance.
DOGE is also bouncing from support formed by an ascending trendline. This trendline intersects with the 0.236 Fibonacci line.
The combination of these support levels suggests buyers are defending lower prices. They appear focused on pushing toward the $0.26 upside target.
Trader Tardigrade pointed out that DOGE maintains a solid uptrend after a quiet breakout. The RSI indicator shows an inverse head and shoulders pattern on the 4-hour chart.
$Doge/4-hour#Dogecoin is maintaining an uptrend following a quiet breakout.
The RSI (inverse head and shoulders pattern) breakout indicates a target in the overbought zone.
Meanwhile, $Doge might reach its previous high of $0.21 🔥 pic.twitter.com/39zDUiHMTv— Trader Tardigrade (@TATrader_Alan) October 20, 2025
This RSI pattern typically precedes strong bullish continuation. The indicator appears ready to climb toward overbought territory if buying continues.
Short Liquidation Data Points to Squeeze Potential
Futures market data reveals an imbalance in liquidation zones. Heavy concentrations of short positions exist between $0.215 and $0.27.
Long liquidation levels below $0.18 remain relatively flat. This suggests limited downside risk from leveraged long positions.
The dense wall of short positions creates potential for a squeeze. A breakout above $0.216 could force bearish traders to buy back their positions.
This forced buying would accelerate movement toward the $0.26 target. The liquidation cascade could provide additional momentum for the rally.
Crypto analyst BitGuru identified $0.20 as a key level for Dogecoin. The price must hold above this floor to confirm the bullish shift.
A sustained hold above $0.20 would open a path to $0.25. This would mark a significant short-term recovery for the memecoin.
DOGE recently corrected to $0.095 before beginning its current rebound. The recovery from this deep correction shows market stabilization.
The combination of Musk’s social media activity and technical patterns creates a bullish setup. Futures data indicates the path of least resistance may be higher as shorts face potential liquidation above $0.216.
